Financial & Estate Planning

That said, certain equities probably should be held inside your IRA or other tax-deferred retirement plan:

  • Real estate investment trusts (REITs) and REIT funds. REITs pay high dividends, which can be sheltered from current taxation. Some of the dividends paid by REITs are not taxable but most of the yield to investors is taxable, so they belong inside a retirement plan. Moreover, REIT dividends might not be tax-exempt, under President Bush